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1. How do you determine who is a manufacturer or processor?

Taxpayers must complete a Business Classification Information (BCI) sheet (PDF) explaining the process and nature of your business activities. Process flow charts, pictures and site visits may also be used for a determination.

2. What assets should be filed as M&T?

Any assets used directly in the manufacturing process, or used in connection with machinery that is directly used, will be filed as M&T.

3. What about idle and unused equipment?

Machinery and tools may be reported as "Idle and Unused" if:

• They have been discontinued in use continuously for at least one year prior to January 1 of the current tax year.
• On and after January 1, 2017, have been specifically identified in writing by the taxpayer to the commissioner of the revenue on or before April 1, 2017, that the machinery and tools would be withdrawn from service before January 1, 2018, not in use on January 1, 2018, and no reasonable prospect exists that the machinery and tools will be returned to use prior to January 1, 2019.

4. What is the deadline for filing M & T?

The filing deadline for Machinery and Tools is March 1.

5. Is there a penalty for not filing M & T on time?

There is a 10% late filing penalty assessed on all returns not postmarked by March 1.